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Microsoft May Invest Up to $3 Billion to Help Take Dell Private

Just last week, we reported that Dell were in talks to go private. However, this move depends very much on whether financing can be secured. With no signs of progress, it seems that Microsoft might chip in and help.

According to CNBC, Microsoft is currently in talks with both Silver Lake, the main equity firm behind the potential buy-out, as well as Dell's CEO, Michael Dell, in hopes of coming up with some sort of a deal. Microsoft is reportedly interested to invest up to $3 billion to help make the deal happen.

That said, we see little reason for Microsoft to want to invest in Dell. Firstly, what got Dell into this predicament was its over-reliance on Windows-based PCs, and this is something Dell wants to change. Furthermore, with the Surface family of tablets, Microsoft has signaled its intention to enter the hardware marketplace. Taking both points into account, there seems to be little incentive for Microsoft to invest in Dell.